Canadian buyout firm Onex to buy Swiss packaging group SIG: Reuters

(Reuters) – Canadian buyout firm Onex Corp said it would buy Swiss packaging group SIG Combibloc Group AG for up to 3.57 billion euros (US$4.43 billion).

An additional payment of up to 175 million euros will be payable based on the financial performance of SIG in 2015 and 2016, the private equity firm said.

The deal is expected to close in the first quarter of 2015, subject to regulatory approvals, Onex said.

The equity investment of approximately US$1.25 million will be made by Onex Partners IV, certain limited partners as co-investors, including Onex, and SIG’s management team, the firm said.

Reuters reported earlier this month that Onex, Canada’s largest listed private equity firm, was leading the bidding for SIG Combibloc, citing sources.

SIG is based in Neuhausen am Rheinfall, Switzerland, and has annual earnings before interest, tax, depreciation and amortisation (EBITDA) of about 420 million euros.

SIG operates seven production facilities globally, based out of Europe, South America and Asia Pacific. The company is owned by Reynolds Group Holdings Limited, backed by New Zealand’s richest man, Graeme Hart.

(Reporting by Neha Dimri in Bangalore; Editing by Mark Potter)

(This story has been edited by Kirk Falconer, editor of peHUB Canada)

Photo courtesy of SIG Combibloc Group AG